Q&A: Sensitivity to costs, environment direct technology development

Douglas Mack, president of Diamond Moba Americas, pulls from global market experiences for new product development.

Douglas Mack
Douglas Mack

Doug Mack was appointed president of Diamond Moba Americas in November 2008. He obtained a degree in industrial engineering from Clarkson University in New York in 1984, and gained extensive experience in the Industrial & Power Systems Division of General Electric where he was involved in sales and service management. After a period with Munters in the U.S. agricultural industry, he was recruited for the top position at Diamond with responsibilities for North and South America. In January 2009, Doug led the integration of Diamond and Moba USA.

He is also president of OvoPro, involved in further processing of eggs, and interacts with the Petersime and Jamesway incubator companies. All fall under the umbrella of Food Processing Systems, a privately held Dutch holding company with activities in equipment for the egg, fruit and vegetables and hatchery industries.

Egg Industry:  How do you view the outlook for the U.S. egg industry?

Douglas Mack:  The outlook for the industry is good. The current recession may, in fact, have assisted the egg industry since consumers are seeking value-priced protein which they find in eggs. U.S. expansion has slowed mainly due to the uncertain regulatory environment for live production standards and tight investment capital markets. Demand should remain steady and hopefully prices should not deteriorate too much for the next 12 to 24 months.

EI:  What are some the challenges facing the industry and their possible solutions?

DM:  There is a whole array of challenges that are not necessarily under the control of producers. The price of feed is driven in large measure by crop yields and both domestic and foreign demand. Diversion of corn to ethanol is an important consideration and influences the cost of production. There is a growing emphasis from consumers and the federal government on food safety standards. In response, Diamond Moba Americas is actively evaluating possible improvements in our equipment which will benefit producers and ultimately consumers. Environmental restraints will intensify, but again technology could provide cost-effective solutions. Consumer expectations are increasing and the egg industry will have to provide higher levels of quality.

EI:  How is Diamond Moba Americas approaching innovative technology?

DM:  I am frequently asked by customers how much investment we are making in product development. I reply that all senior managers within our operating and holding companies drive investment in R&D as the means of sustaining business vitality. This exemplifies the importance Diamond Moba Americas placed on technical improvements and satisfying the needs of our customers. We are looking at water conservation and power consumption which influence cost, and both factors relate to environmental considerations as well. Labor efficiency, especially in post-pack handling, is being addressed. Speed, efficiency, processing cost and quality are all incorporated in our approach to R&D. We have an energized and talented group of engineers, many of whom have gained experience in other industries. They are bringing new concepts to what in the past was a traditional approach to egg grading and packing. An example is our initiative to improve the drying of eggs at high production rates with minimal expenditure of energy.

EI:  Since you are now part of a multinational with an affiliate enjoying a significant market share in the EU do you foresee potential for technology transfer?

DM:  Sharing of ideas and assessing the respective values of each of the product lines was initiated within weeks of the formation of the new company. Obviously, the U.S. has experience in egg washing and drying. Our EU colleagues can also apply advantages derived from their specific market focus. We believe that we can achieve the best of all possible worlds through sharing technology and experience.

EI:  How will Diamond Moba Americas approach marketing new technology to a price-conscious industry?

DM:  We appreciate that availability of capital is a restraint to replacing existing installations. We hope to demonstrate that the return on capital from upgrading will be beneficial to the bottom line of our customers. We believe that improved service, preventive maintenance, sharing knowledge and assisting our clients to achieve optimal production levels will help justify the costs of upgrades and replacement on the basis of total cost of ownership. All new egg grading products offered by Diamond Moba Americas include advanced self timing and auto diagnostic features. It is possible for Diamond Moba Americas to remotely monitor operation of installations and to recommend adjustments and/or replacement of components to improve efficiency and prevent breakdowns.

EI:  What is your long-term vision for Diamond Moba Americas relative to the industry?

DM:  We at Diamond Moba Americas believe that we should act as stewards of the industry, and we constantly refer to our accountability to our customers. To this end we have initiated a program of listening to our customers, analyzing their needs and developing appropriate technology that addresses all of the external variables they must manage. This is an ongoing process to create ever greater value for customers in order that they may achieve sustained success.

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